Commodities shine alongside vol boost

摘要

Commodities proved to be the top performing asset class during the first two months of 2014, reversing 13 months of consecutive outflows from commodity-related exchange traded products and two years of dismal returns. The gains - almost 7% in the year to-date on the DJ UBS commodity index - have come alongside a welcome uptick in volatility that has triggered a boom in activity for bank commodity businesses, many of which have been forced to restructure after coming under intense financial and regulatory pressure in recent months (see People & Markets story). "Most investors spent 2012 and 2013 rethinking their allocation to commodities, but the majority of our client base has a long-term commitment to the asset class. They didn't have a knee-jerk reaction on the way down and they aren't having a knee-jerk reaction on the way up either, but it certainly makes it easier to have a discussion with new clients," said Jonathan Whitehead, head of commodities at SG.